Fortescue Metals Group has revealed plans to establish a major manufacturing facility in the US state of Michigan, just a day after it unveiled a New York-based capital business.
Fortescue Metals Group has revealed plans to establish a major manufacturing facility in the US state of Michigan, just a day after it unveiled a New York-based capital business.
The iron ore miner plans to invest US$35 million ($54 million) in the facility, which it expects to become a major hub for production of electric vehicle and heavy industry batteries, hydrogen generators, fast chargers and electrolysers.
The facility has the potential to create up to 600 jobs in its first phase, and Fortescue anticipates it will be a direct beneficiary of the US government’s tax credit incentive for battery modules under its much-lauded Inflation Reduction Act.
The IRA offers tax credits of up to US$10 per kilowatt hour of battery storage produced.
Fortescue executive chairman Andrew Forrest highlighted Michigan’s long history as a US automotive manufacturing hub and said the expansion would help the company’s green goals.
“Fortescue’s advanced manufacturing centre will breathe fresh life into the birthplace of the automotive industry,” he said.
“We are committed to investing in the next generation of green manufacturing projects that will help decarbonise business and heavy industry, and in turn create a strong future for manufacturing jobs in the United States.”
Mr Forrest has been outspoken in his praise of the Inflation Reduction Act – comprising a mammoth $520 billion worth of programs designed to help the US re-establish a domestic manufacturing industry and help it decarbonise.
Fortescue was recently chosen to negotiate with the US government on the development of a Pacific Northwest hydrogen hub, which could receive up to $1 billion worth of government funding.
“There is no better place in the world to be investing in renewable and green energy projects right now than the US,” Mr Forrest said last month, after the company began its negotiations.
Fortescue Energy chief executive Mark Hutchinson reiterated the company’s support of the Act this morning.
“Michigan and the United States are extremely attractive places to manufacture, given the skilled workforce, existing supply chain and significant incentives from state and federal governments, including the Inflation Reduction Act.”
The move is the latest pivot from FMG towards the US, and comes just one day after it revealed it had launched Fortescue Capital in a bid to tap broader capital markets for its green energy projects.
Fortescue shares were trading steady at $25.20 at 7.30am AWST this morning.